7: Questioning the Fiscal Inequality as an Obstacle to Social Cohesion: Cases from North Africa

The issue of ‘Fiscal Inequality’ characterizing the North African countries can be a fruitful tool for rethinking the main (deep) causes of the failures of their development policies. This question is often part of a hidden local agenda linked to the wide inequality between social categories of the same country, those natural resources rich especially, as the North African ones. We have chosen to consider this issue as our main hypothesis to deal with. Our main objective is to open new ideas and orientations to renew our reflection on the fight of inequality to better development level and social cohesion in these countries, despite their diversity and their differences. The failures of resource-rich States to improve the well-being of their populations are not limited to economic aspects, but everyone can clearly see their growing negative impacts on social cohesion indicated for example by the continued attempt of their citizens to migrate to the North regardless of the means used and whatever the threats to them are. This ingrained desire to emigrate and the daily attempt to cross borders to leave the country of origin strongly underline the huge and dominant inequality context in the North African countries, as in similar cases in sub-Saharan Africa. Questioning the inequality in its fiscal aspects, can help to overcome the unsatisfied and very limited technical analyzes and their explanations of development patterns and policy failures which have a negative impact on social cohesion in these countries. This focus could open new ways for thinkers, researchers, and policymakers to address many of today’s misunderstood topics, such as ‘Development policies failures’, and ‘Social cohesion weaknesses’. This panel is organised with the support of the Finnish Network of Anna Lindh Foundation.

Chaired by Pr Nadji Khaoua (University of Annaba, Algeria), pr.nadjikh@gmail.com

Room 401

Abdellah Abaida (University Ibn Zohr) and El Khourchi Baba (University Ibn Zohr)

Higher education graduates skills and income inequality: Experimental study on university data

Abstract
Problem Statement: Since competencies and skills level affect higher education graduates income and their carrier opportunities, universities and higher education institutions should be well awarded of competencies inequality. Therefore, many academics, professors and graduates students have a growing concerns about income inequality and equality of opportunities. Many of them, argue that labour market doesn’t take account of their generic and subject-specific competencies properly, this might be leads to income inequality. This research provides a useful analysis to see whether if graduates competencies and skills are associated with income inequality. We comparing wages graduates from different institutions affiliated to the university. Purpose of Study: Questions and hypothesis: The study main goal is to examine which competencies among other factors are leading to income inequality between higher education graduates. More precisely, it is interesting to investigate how those skills level can affect graduates wages and their performances. We investigate the hypothesis that subject-specific competencies are more affecting their wages then generic competencies, we investigate the question whether labour market structure evaluate competencies differently not by their level, but other factors. Theoretical rationale: In literature, income inequality measurement methods has long been discussed by many disciplines. A review of this literature revels a consensus on the consequences of both subject-specific generic competencies to reduce income inequality (Becker (1994). On the empirical side, authors state that they cannot be sure that labour markets rewards based on competencies levels. Research Methods: We’ll using econometric models on data from a survey of 1117 graduates with work experience conducted on Hassan Premier university in Morocco. The study also applies Datamining analysis techniques for data analysis which allows detecting group effect.

Hassan Khalouki (My Ismail University in Meknes, Morocco)

Fiscal justice, development policies and social cohesion in Morocco

Abstract
Inequalities in Morocco are both inequalities of levels and inequalities of lack. Although deep and worsening, inequalities are, however, irreducible to disparities in spending, and are determined by shortages and deprivations of basic resources. The links between inequality and development must be understood as follows: if inequalities cross a threshold of tolerance, they become not only counterproductive, but they also tend to undermine social cohesion and feed systemic mistrust. It is up to the social link survey to define the threshold of acceptability beyond which inequality aversion must impose a dual tax and social redistribution policy. On the basis of a critical description of the tax system in force in view of its scope in terms of tax justice, a perspective of reframing the tax system and activating the redistributive principle is suggested. But if the requirement of pure redistribution is to make use first, of the fiscal tool whose universal and progressive character makes it possible to correct the inequalities without prejudicing the role of the price system, the fact remains that the in-depth action on the inequalities of capacities implies a commitment of the State in terms of social investment. The examination of the particular trajectory of the middle classes showing a “social downgrading”; relative to the latter within the system of distribution of wealth and capacity redistribution action may have, in effect, in the medium and long term, a resorption of extreme separations between social classes and a durable re-equipment of interpersonal trust and social cohesion.

Pr Nadji Khaoua (University of Annaba, Algeria)

Questioning the Fiscal Inequality as an Obstacle to Social Cohesion, Cases from North Africa

Abstract
The issue of “neo-colonization” of the political powers of the South can be a fruitful tool for rethinking the main (deep) causes of the failures of development policies in these countries, often considered “rich in natural resources”. This question is often part of a hidden local agenda linked to the fiscal inequality between social categories of the same country, those natural resources rich especially, as the North African ones. We have chosen to consider this issue as our main hypothesis to deal with. Our main objective is to open new ideas and orientations to renew our reflection on the failures of development policies in these countries, despite their diversity and their differences. The failures of resource-rich states to improve the well-being of their populations are not limited to economic aspects, but everyone can clearly see their growing negative impacts on social cohesion indicated for example by the continued attempt of their citizens to migrate to the North regardless of the means used and whatever the threats to them. This ingrained desire to emigrate and the daily attempt to cross a border to leave the country of origin strongly underline the lack of social cohesion in the North African countries, as in similar cases in sub-Saharan Africa. Questioning the “neo-colonization of the failing South political powers, as in many African countries, can help to overcome the unsatisfied and very limited technical analyzes and their explanations of development patterns and policy failures which has a negative impact on social cohesion in these African countries. This focus could open new ways for thinkers, researchers, and policymakers to address many of today’s misunderstood topics, such as: 1 – Development: How can we renew our approaches on this subject, explain more and better analyze the major failures found in development models and policies chosen to achieve the announced objectives? 2 – Democracy: In all African countries, especially resource-rich ones (Algeria, Morocco, Niger, Nigeria, Gabon, Ivory Coast, etc.), we observe that democracy is not the basis of social participation to define the rule of the state and the economy. What are the main reasons? Are they linked to the private political capture of the products generated by the exploitation of the various national resources? 3 – Social cohesion: Social cohesion is generally considered as the main result of an adapted social protection policy. This policy aims to improve the social well-being of the less favored by broadening the fiscal space in direction to major population groups, especially the wealthiest, who must accept to contribute more through their tax contributions to financing social protection programs. Are social protection policies in the African countries contexts adapted to the needs of their populations? Are these countries widened their fiscal space to the contributions of their wealthiest citizens? How can we understand the failures of fiscal policies to fight inequalities and strengthen social cohesion?